Costly Insurance Mistakes Putting Canadians at Risk
Almost a third of Canadians (30 per cent) who have owned or rented a house, condo or an apartment admit they didn’t have tenant or property insurance, shows an online poll commissioned by Allstate Insurance Company of Canada. The poll also found that eight per cent of Canadian drivers admit to having driven without any car insurance.
The survey results show that people may be putting their coverage at risk without even realizing it. Thirty-two (32) per cent of respondents renovated their home but didn’t tell their insurance provider and fourteen (14) per cent of drivers who have been in a collision said they hadn’t reported it to their insurance company — both decisions that could invalidate a future claim.
Here are the most common mistakes made
- Not listing all the drivers in the household.
- Registering a car in someone else’s name or providing a different address from the primary residence.
- Not disclosing if a car is used for business.
- Forgoing tenant insurance if you don’t have many valuables and not realizing the risk if someone gets hurt or something damages the building.
- Forgetting to keep receipts of valuables and not knowing their worth when making a claim.
- Not discussing potential physical risk characteristics of a home. This would include failing to disclose the presence of knob and tube wiring or the presence of a wood burning stove.
Here’s what you can do
- Review your policies regularly to ensure they meet your current needs and discuss options for savings. This can not only protect you down the road, it can also save you money. For example, if you get into a collision and pay for the damages out-of-pocket, you could be in serious financial trouble down the road if you are asked to pay more money because the damages to the other vehicle are more extensive than first realized.
- If the cost of insurance is a concern, consumers can save money by choosing different types of coverage, or by choosing a different deductible.
- Canadians may not be aware that small changes to their lifestyle (e.g. no longer using a car to commute to work, or a having a kitchen renovated) can affect their policy.
Ensuring you maintain coverage means it will be there when you need it most!
About the survey
Allstate commissioned Abacus Data (www.abacusdata.ca) to conduct an online survey of 1514 Canadians aged 18 and older. The total sample was weighted by age, gender and region to be proportionately representative of the Canadian population of adults ages 18 and older. Responses were collected between May 24 and 28, 2013.